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CURRENT STATUS OF VARIOUS POLICIES OF MINISTRY OF ELECTRONICS &

INFORMATION TECHNOLOGY

MSIPS Policy

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for

amendment in the Modified Special Incentive Package Scheme (M-SIPS) to further incentivize

investments in Electronic Sector and moving towards the goal of Net Zero imports in

electronics by 2020.

The amendments in M-SIPS are expected to create employment opportunities and reduce

dependence on imports. The projects already received under the scheme have the potential to

generate employment to the extent of upto one million persons (direct and indirect). The Policy

covers all States and Districts and provides them an opportunity to attract investments in

electronics manufacturing. So far, 243 applications have been received under the scheme, out of

which 75 applications have been approved involving investment proposals of Rs. 17,997 crore.

The salient features of the amendment are:

o The applications will be received under the scheme upto 31st December 2018 or till such

time that an incentive commitment of Rs 10,000 crore is reached, whichever is earlier.

In case the incentive commitment of Rs 10,000 crore is reached, a review will be held to

decide further financial commitments.

o For new approvals, the incentive under the scheme will be available from the date of

approval of a project and not from the date of receipt of application.

o The incentives will be available for investments made within 5 years from the date of

approval of the project.

o Approvals will normally be accorded to eligible applications within 120 days of

submission of the complete application.

o A unit receiving incentives under the scheme, will provide an undertaking to remain in

commercial production for a period of at least 3 years.

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o The Appraisal Committee recommending approval of project will be chaired by

Secretary, Ministry of Electronics and IT.

o A separate Committee headed by Cabinet Secretary and comprising of CEO, NITI Aayog,

Secretary Expenditure and Secretary, MeitY will be set up in respect of mega projects,

envisaging more than Rs. 6850 crore (approx. USD 1 Billion) investments.

Electronics Cluster Scheme

MeitY notified Electronics Manufacturing Clusters (EMC) scheme in October, 2012 to support

creation of world-class infrastructure for attracting investments in Electronics Manufacturing.

Assistance for projects in Greenfield Electronics Manufacturing Clusters is provided to the extent

of 50% of the project cost subject to a ceiling of Rs. 50 crore for every 100 acres of land. For

larger areas, pro-rata ceiling applies. For smaller clusters, the extent of support is decided by the

Steering Committee for Clusters (SCC) subject to the ceiling of Rs. 50 crore. For Brownfield

EMCs, 75% of the cost of infrastructure, subject to a ceiling of Rs. 50 crore is provided as grant.

This Scheme is open for receiving applications for a period of five years from the date of

notification. Further period of 5 years is available for disbursement of funds for the approved

applicant.

Under EMC Scheme, MeitY has received 49 applications (45 for Greenfield EMCs and 4 for

setting up of Common Facility Centre (CFC) over an area of 7762 acres for creating world class

infrastructure from 18 states across the country. The total grant assistance which they are

seeking is of Rs. 3799 crore which in turn is expected to generate 10.72 Lakh employment

opportunities. The projected outlay is Rs. 8787 crore.

Out of this, MeitY has accorded 15 final approvals (13 Greenfield EMCs and 2 Common Facility

Centre (CFC) in Brownfield EMC). In addition, 14 applications have been accorded in-principle

approval (12 applications for Greenfield EMC and 2 applications for (CFC) in Brownfield EMC

(AP-3, Bihar-1, Gujarat-1, Karnataka-1 (CFC), Maharastra-1(CFC), Tamilnadu-1, Telangana-2,

Uttar Pradesh-3).

Estimated Investment and employment opportunities under EMC scheme

Particulars

(Projects)

No. of EMCs Employment Investment

(Rs. in crore) Direct Indirect Total

Final Approved 15 77750 106434 184184 36091

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In-Principle

Approved

14 158128 484960 643088 19550

Details of Applications accorded final and In-principle approval in Annexure 1.

FTAs

o India-Korea CEPA: South Korea has sought change sin Rules of Origin for certain items of

consumer goods and electronics. the list is attached along with requested changes in

Rules of Origin

o Any other FTA

Compulsory Registration Order

MeitY, notified Electronics and IT Goods (Requirement of Compulsory Registration) Order,

2012 in the Gazette of India vide S.O. No. 2357(E) dated 03.10.2012 and S.O. No. 2905(E) dated

13.11.2014 under the provision of Compulsory Registration Scheme of BIS Act, 1986 mandating

Indian Safety Standards for 30 electronic product categories. List of products covered under CRO

is in Annexure 2.

Further, the Indian Language support for Mobile Phones as per IS 16333 (Part 3) has been added

to the schedule of this Order vide notification dated 24.10.2016. The standard provides for

inputting of text in English, Hindi and at least one additional Indian official language along with

facility of readability in the phones for all 22 Indian official languages and script supporting these

languages. The Order is set to come into effect from 01st July, 2017.

Two portals (http://crsbis.in/BIS/ and http://electronicstds.gov.in/ CREITG/) to bring

transparency & make information easily available to stakeholders have been launched

facilitating online registration process, surveillance process, access to database of Registered

Manufacturing Units and products covered. Regular stakeholder consultations and Technical

consultations are held for the purpose.

The Compulsory Registration scheme has resulted in high compliance of notified electronic

goods to Indian safety standards and more than 7000 manufacturing units have been registered

with BIS covering approximately 42,000 products models/series. Bureau of Indian Standards

(BIS) has notified the Standard Mark for Compulsory Registration Scheme along-with the

Guidelines for use of Standard Mark and labeling requirements on 01.12.2015. Accordingly,

http://crsbis.in/BIS/http://electronicstds.gov.in/%20CREITG/

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marking of Standard Mark on notified goods for Electronics & IT goods is essential w.e.f

1.7.2016.

The Ministry has further clarified that detachable power supplies for servers/storage stand

covered under the definition of power adaptors of Electronics and IT Goods (Requirement of

Compulsory Registration) Order, 2012 w.e.f. 1.02.2017.

Preferential Market Access

The Ministry of Electronics and Information Technology (MeitY) has notified the policy for

providing preference to Domestically Manufactured Electronic Products (DMEP) in Government

procurement for its own use and not with a view to commercial resale on 23.12.2013.

The DMEPs are products manufactured by companies registered in India and engaged in

manufacturing in India and includes contract manufacturers, but excluding traders. Electronic

products to be notified under this policy shall meet the minimum 25% domestic value-addition

in terms of Bill of Material (BoM) from domestic manufacturers. The percentage of procurement

to be made from DMEP shall not be less than 30% of the total procurement value of that

electronic product(s).

The policy is applicable to all Ministries / Departments (except Ministry of Defence) and their

agencies for electronic products in Government procurement for its own use and not with a

view to commercial resale. The policy is also applicable for procurement of electronic products

made under all Centrally Sponsored Schemes and grants made by Central Government. The

revised policy guidelines have been issued for providing preference to DMEP in Government

procurement vide Notification No. 33(7)/2015-IPHW dated 16.11.2015.

Nine generic electronic products, which are procured across sectors, viz., Desktop PCs, Laptop

PCs, Tablet PCs, Dot Matrix Printers, Smart Cards, LED Products, Biometric Access Control/

Authentication Devices, Biometric Finger Print Sensors and Biometric Iris Sensors have been

notified by the Ministry of Electronics and Information Technology (MeitY) and 23

Telecommunications Products have been notified by the Department of Telecommunications

(DoT), in furtherance of the policy. Directorate General of Supplies and Disposals (DGS&D) has

issued guidelines for implementing the policy in their rate contract process.

An Online Monitoring System www.deity-pma.gov.in has been deployed for reporting by

Ministries / Departments about the compliance of Policy. In this regard, User Ids and Passwords

to upload the report on the Online Portal have been communicated to Government

Departments. (c) As on 20.09.2016, fourteen Ministries/ Departments /Agencies have uploaded

their compliance reports on the aforesaid portal. So far, the Ministries / Departments have

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procured electronic products worth 448 crore (approx) complying with the Policy for providing

preference to DMEPs in Government procurement.

Annexure 1

Details of Applications accorded final approval

# State Location of EMC Area (Acres)

Chief Promoter/SPV

Date of accord of final approval

Financial out lay (Rs. in crore)

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Project Cost

GIA

Greenfield Electronics Manufacturing Cluster

1 Andhra Pradesh

Chilamathur, Anantapur District

47.32 ELCINA RAAGA MAYURI Electronics Park Private Limited

04.02.16 52.13 23.00

2 Andhra Pradesh

Village-Cherivi, Satyavedu Mandal, Chittor District

94 Sri City Pvt. Ltd. 20.07.16 56.75 27.34

3 Chhattisgarh Village-Tuta, Sector-22, Naya Raipur,Tehsil-Abhanpur, Raipur District

69.98 Chhattisgarh State Industrial Development Corporation ltd. (CSIDC)

07.01.16 89.23

43.08

4 Gujarat Village-Tunda, Taluka- Mundra, District-Kutch

631.38 Mundra Solar Techno park Private Limited (MSTPL)

04.07.16 745.14 315.69

5 Goa Village-Tuem, Taluka- Pernem Goa

147.55 Department of Information and Technology, Government of Goa

03.03.17 161.32 73.77

6 Jharkhand Adityapur, Saraikela-Kharsawan District

82.49 Adityapur Industrial Area Development Authority (AIADA)

22.09.15 97.88 41.48

7 Kerala Kakkanad Village,Kanayannur Taluk, Ernakulam District

66.87 Kerala Industrial Infrastructure Development Corporation (KINFRA)

24.08.16 140.01 50

8

Madhya Pradesh

Badwai-Bhopal 50 Madhya Pradesh State Electronics Development Corporation Ltd.(MPSEDC)

25.08. 14 46.16 20.86

9 Madhya Pradesh

Purva-Jabalpur

40 25.08.14 38.01 17.76

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Details of Application accorded (In-principle approval) under EMC scheme

# State Chief Promoter/SPV

Location of EMC

Proposed Area of EMC

Financial out lay (Rs. in crore)

Date of In-principle Estimated GIA Sought

10 Odisha Infovalley at Bhubaneswar Industrial Area, Khurda District

203.37 Odisha Industrial development Corporation (IDCO)

05.09.16 200.76 93.09

11 Rajasthan SPL-1, Salarpur, Khushkera, Bhiwadi

50.3 ELCINA Electronics Manufacturing Cluster Pvt. Ltd (EEMCPL)

15.09.15 46.09 20.24

12 West Bengal Sector-IV & V, Falta Industrial Centre, P.S Ramnagar, District South 24 Parganas

58.04 West Bengal Electronics Industry Development Corporation Limited (WEBEL)

04.02.16 58.86 26.52

13 West Bengal Naihati town, North 24 Parganas in district

70 West Bengal Electronics Industry Development Corporation Limited (WEBEL)

31.08.16 58.31 25.70

Sub Total (A) 1611.30 1790.65 778.53

Common Facility Centre In Brownfield EMC

14 Karnataka (CFC)

Plot No. 360, KIADB Industrial Area, Hebbal, Hottagalli, Mysore

1.11 Mysore ESDM Cluster Private Limited

15.09.15 29.53 21.31

15 Maharashtra Shendra Industrial Area, Aurangabad

1.98 Deogiri Electronics Cluster Private Limited

03.03.17 27.24 20.58

Sub Total (B) 3.09 56.77 41.89

Total 1614.39 1847.42 820.42

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(Acres) Cost approval

Greenfield Electronics Manufacturing Cluster

1 Andhra Pradesh

Andhra Pradesh Industrial Infrastructure Corporation ltd. (APIIC)

Village-Gurramapalem, Pendurthi Mandal, District-Visakhapatnam

98 66.98 31.18 08.01.2016

2 Andhra Pradesh

APIIC Vikruthamala Village, Yerpadu Mandal, Chittor District

501.40 323.62 153.45

3 Andhra Pradesh

Celkon Impex Pvt. Ltd.

Tirupati, Renigunta Mandal , Chittor District

122 102.74 50

4 Bihar A.V.Ispat Pvt. Ltd.

Abgilla village, Gaurichak district, Patna

21.11 33.78 16.89 07.08.2015

5 Gujarat Gujarat

Industrial

Development

Corporation

(GIDC)

Village-Khoraj,

Taluk-Sanand,

District-

Ahmadabad

190.40 314.53 95.20 15.05.2015

6 Rajasthan Rajasthan

State

Industrial

Development

& Investment

Corporation

Ltd. (RIICO)

Karoli Industrial

Area, Bhiwadi,

District-Alwar,

122.15 79.29 30.83 02.09.2016

7 Tamil Nadu ADD Industrial

Park(Tamil

Nadu) ltd.

Annur Taluk,

Coimbatore,

157.71 169.82 61.15 15.05.201

5

8 Telangana

Telangana State Industrial Infrastructure Corporation Ltd.(TSIIC)

e-city Hyderabad 602.37 552.78 264 08.08.2013

9 Maheshwaram 310.00 342.91 110.90 08.08.2013

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10 Uttar Pradesh

U.P Electronics Corporation Limited (UPLC)

Plot No. 6/A, sector-24, Yamuna Expressway, Greater Noida

100 100 47.56 04.02.2015

11 Uttar Pradesh

UP Development System Corp. Limited (UPDESCO)

Greater Noida 100 71.42 34.29 04.02.2015

12 Uttar Pradesh

U.P Electronics Corporation Limited (UPLC)

Plot No. 3/A, Sector 24, Yamuna Expressway

105 125.95 52.50 21.01.2016

Sub Total(A) 2430.14 2283.82 947.95

Common Facility Centre(CFC) in Brownfield EMC

13 Karnataka ELCIA ESDM Pvt. Ltd.

Electronic City, Bangalore

1.167 85.15 50 30.01.2014

14 Maharashtra MCCIA

Electronic

Cluster

Foundation

Pimpri Industrial

Area, Pune

0.61 66.10 49.10 15.05.201

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Sub Total(B) 1.777 151.25 99.10

Total(A+B) 2431.92 2435.07 1047.05

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ANNEXURE 2

List of products covered under CRO

Sl. No. (1)

Product (2)

Indian Standard Number (3)

Title of Indian Standard (4)

1 Electronic Games (Video) IS 616:2010 Audio, Video and similar Electronic Apparatus- Safety Requirements

2 Laptop/Notebook/Tablets IS 13252:2010 Information Technology Equipment- Safety- General Requirements

3 Plasma/LCD/LED Televisions of Screen size 32 & Above

IS 616:2010 Audio, Video and Similar Electronic Apparatus- Safety Requirements

4 Optical Disc Players with built in amplifiers of input power 200W and above

IS 616:2010 Audio, Video and Similar Electronic Apparatus- Safety Requirements

5 Microwave ovens IS 302-2-25:1994 Safety of Households and similar electrical appliances: Part 2 Particular requirements: section 25 Microwave ovens

6 Visual Display Units, Video Monitors of Screen size 32 & above

IS 13252:2010 Information Technology Equipment- safety- General Requirements

7 Printers, Plotters IS 13252:2003 Information Technology Equipment- Safety- General Requirements

8 Scanners IS 13252:2010 Information Technology Equipment- Safety- General Requirements

9 Wireless Keyboards IS 13252:2010 Information Technology Equipment- Safety- General Requirements

10 Telephone Answering Machines IS 13252:2010 Information Technology Equipment- Safety- General Requirements

11 Amplifiers with input power 2000W and above

IS 616:2010 Audio, Video and Similar Electronic Apparatus- Safety Requirements

12 Electronic Musical Systems with Input Power 200W and Above

IS 616:2010 Audio, Video and Similar Electronic Apparatus- Safety Requirements

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13 Electronic Clocks with Mains Powers

IS 302-2-26:1994 Safety of Household and Similar electrical appliances: Part 2 Particular requirements : Section 26 Clocks

14 Set Top Box IS 13252:2010 Audis, Video and similar Electronic Apparatus- Safety Requirements

15 Automatic Data Processing Machine

IS 13252:2010 Information Technology Equipment- Safety- General Requirements

16 Power Adaptors for IT Equipments

IS 13252(Part-1):2010 Information Technology Equipments- Safety- General Requirements

17 Power Adaptors for Audio, Video & Similar Electronic Apparatus

IS616:2010 Audio, Video and Similar Electronic Apparatus- Safety Requirements

18 UPS/ Invertors of rating 5kVA IS 16242 ( Part- 1):2014 General and Safety Requirements for UPS

19 DC or AC Supplied Electronic Controlgear for LED Modules

IS 15885 (Part2/Sec13):2012 Safety of Lamp Controlgear Part2 Particular Requirements Section 13 d.c. or a.c Supplied Electronics Controlgear for LED Modules

20 Sealed Secondary cells/ Batteries containing Alkaline or other non- acid Electrolytes for use in portable applications

IS 16046:2015 Secondary Cells and Batteries containing Alkaline or other non- acid Electrolytes- Safety Requirements for Portable sealed secondary cells, and for Batteries made from them, for use in portable applications

21 Self- Ballasted LED Lamps for General Lightening Services

IS 16102(Part1):2012 Self- Ballasted LED Lamps for General Lighting Services Part 1 Safety Requirements

22 Fixed General Purpose Led Luminaries

IS 10322(Part5/ Sec 1):2012 Luminaires Part 5 Particular Requirements Sec 1 Fixed General Purpose Luminaries

23 Mobile Phones IS 13252 (Part-1):2012 Information Technology Equipment- Safety- General Requirements

24 Cash Registers IS 13252 (Part-1):2012

Information Technology Equipment- Safety- General Requirements

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25 Point of Sale Terminals IS 13252 (Part-1):2012 Information Technology Equipment- Safety- General Requirements

26 Copying Machines/Duplicators IS 13252 (Part-1):2012 Information Technology Equipment- Safety- General Requirements

27 Smart Card Readers IS 13252 (Part-1):2012 Information Technology Equipment- Safety- General Requirements

28 Mail Processing Machines/Postage Machines/

Franking Machines

IS 13252 (Part-1):2012 Information Technology Equipment- Safety- General Requirements

29 Passport Readers IS 13252 (Part-1):2012 Information Technology Equipment- Safety- General Requirements

30 Power Banks for use in portable applications

IS 13252 (Part-1):2012 Information Technology Equipment- Safety- General Requirements